When most of us think about the term “retirement age,” our minds turn to a specific time in our lives. More precisely, we think of what’s become the “standard” retirement age, which is 65-years-old. However, it has become increasingly rare that every senior hitting the age of 65 decides to retire then. Some older adults choose to delay a few years, while others may even decide to retire early.
In fact, it’s now much more common to see people retiring at the age of 62, a full three years before the standard retirement age in the United States. Why has this become so popular lately? Are there benefits to retiring early in this way? If you’re considering retiring early, you may already know the drawback is that you could collect less Social Security, and are obviously forgoing several more years of salary to contribute to your nest egg. But here are some advantages to retiring early, at 62.
Reasons to Consider Retiring Early at 62
Thinking about retiring early at 62? Here are a few reasons why that might be a good idea.
You Have the Chance to Enjoy it Longer
No one wants to finally get to retirement only to not be able to relish in the full pleasure of it, such as having health issues that prevent long-desired travel. Retiring early gives you more time to live the retirement life you’ve always dreamed of, be that pursuing hobbies, seeing the world, spending time with grandkids, or absolutely anything else you want.
Compounding this is that the stress of work can actually contribute to health issues, so if you stop working sooner, you may remain healthier longer. No longer having to work means you have time to work on yourself!
It’s Great if You Have Solid Future Plans
Have you devoted your entire life to a single career? By the time you hit your 60s, it’s okay if you feel like you’re ready to try something new. At this point, if you want to retire a few years early so you can start working on that Great American Novel you always wanted to write, now you can. This goes for anything else you’ve been planning to do “as soon as I retire.” Haven’t you earned a break? It’s time to make those dreams come sooner.
You Have Amazing Learning Opportunities
Just like retiring early is great for getting a jump start on your plans, it’s also a perfect opportunity to learn something new. Going back to college to expand your knowledge for knowledge’s sake keeps you mentally engaged while also offering social contact as well, making it a one-two punch of advantages. And it doesn’t have to actually be for knowledge’s sake — maybe you want to try your hand at something new. Retirement is also a great opportunity to volunteer.
It’s Great if You’re Ready to Simplify Your Life
You don’t have to live a simple, uncluttered life once you retire. At the same time, doing so can be a major draw if you’ve been running the rat race for decades and you’ve accumulated way too much stuff. Taking steps to simplify things like your spending is great if you’re looking to retire early, as this will help you stretch your retirement savings while also giving you a great feeling of freedom.
You Can Capitalize on Your Financial Independence
Not everyone is financially ready to retire at the age of 62. There’s nothing wrong with that! But plenty of people are. If you’re living debt-free, or close to it, and you’ve already got plenty of assets that can be used for your retirement income, there’s no reason to delay your retirement any longer than you need to. Financial independence is a wonderful thing to have, so enjoy it!
How Does Retiring Early Affect Retirement?
Of course, there are some consequences for retiring early. The most important one is how retiring at age 62 influences your Social Security benefits. On the one hand, retiring early means that you’ll be receiving those Social Security benefits for a longer period of time. On the other hand, retiring before at least 65 years of age results in your Social Security payments being reducedbetween 25 and 50 percent, depending on when you were born.
Whether this trade-off is a good opportunity for you is dependent on your circ*mstances. If you have plenty of retirement funds put aside already, you’ll have less to worry about when it comes to these dis-advantages of retiring early. You can enjoy receiving even slightly reduced Social Security payments without any discernible impact on your retirement income, but only if you’re prepared to do so.
Additionally, the opportunity exists to retire early without yet filing for Social Security. You say when you’re ready to collect, so you could retire at 62 and start taking Social Secrurity at 65 or even 70, if you were so inclined.
Other Things to Consider When Retiring Early
Of course, there’s more to think about than just your Social Security benefits when it comes to how retiring early affects your retirement. Doing so means you will need to move up your plans for retirement by three years, and that includes what you intend to do with all your free time that you wouldn’t have had to fill if you waited until 65.
Additionally, there are other important plans that you’ll have to move up by three years as well. The most crucial ones are likely to be where you intend to live and if you have any healthcare plans in place for the future. You’ll need to prepare these answers to ensure you’re ready before you pull the trigger on early retirement. Your job’s healthcare may be the best reason to stay employed.
How to Get the Most Enjoyment out of Retiring Early
If you plan on taking advantage of retiring early, consider doing so in a retirement community. Even better, a continuing care retirement community can help you budget your retirement years by paying for long-term care in today’s dollars.
Today’s retirement and independent living communities can often be compared to cruise ships without the ocean. Think life-enhancing amenities, fun-filled activities, ever-present social opportunities, and even exciting excursions.
Selling your home means you can contribute heartily to your nest egg, and then you can focus entirely on enjoying your wonderful new campus and any hobbies you’ve been dreaming of indulging. Start getting pampered sooner.
Acts Retirement-Life Communities has 27 resort-style campuses across nine different states. You can even stay at any of them whenever you want an inexpensive vacation.
Explore the Acts communities now.
